If total income in Sweden remains the same but the wage share of income rises, the Swedish AD curve will most likely:
A. shift to the left.
B. become steeper.
C. become flatter.
D. shift to the right.
Answer: D
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Refer to the table below. What is the long-run average cost of producing 30 units of output?
The table shows three short-run cost schedules for three plants of different sizes that a firm might build in the long run.
A. $7
B. $8
C. $9
D. $10
To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
If the opportunity cost of working outside the home decreases then it is likely that ________, assuming all else equal
A) there will be a rightward shift in the labor supply curve B) there will be an upward movement along the labor supply curve C) there will be a downward movement along the labor supply curve D) there will be a leftward shift in the labor supply curve
As a result of OPEC ________ oil prices in 1973 and 1980, real GDP in United States ________
A) increasing; increased B) increasing; decreased C) decreasing; increased D) decreasing; decreased E) increasing; did not change